Romania - Reining in Local Government Spending

World Bank

World Bank

关键词: ACCOUNTANT;    ACCOUNTING;    ADMINISTRATIVE BURDEN;    ADMINISTRATIVE CAPACITY;    ARREARS;   

RP-ID  :  57040

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Sub-national Governments play animportant role in the Romanian public sector. In 2009,sub-national spending was equivalent to 8.5 percent of grossdomestic product (GDP). Romania has frequently adjusted itssystem for financing sub-national government over the lastdecade. These changes reflect ongoing Government concernsover the performance of local governments as well asattempts to increase the transparency and stability of theintergovernmental fiscal relationship. The most recentreform proposals reflect a more immediate concern: thegovernment deficit. In an effort to meet aggregate targetsfor cuts in spending, the Government has been debatingmeasures to reduce the local wage bill, cut transfers tolocal governments, and restrain local arrears. The principalobjective of this technical assistance has been to advisethe Government on the design and implementation of suchefforts, and to suggest directions for longer-termstructural reforms. Romania has a two-tier structure oflocal government. The national territory is divided into 41counties (judets) and the city of Bucharest. These are thendivided into various categories of second-tier localgovernments, hereafter referred to as localities. As of2008, there were 3,179 such jurisdictions, consisting of2,855 communes, 216 towns, 102 cities, and six Bucharestdistricts. Both counties and localities have electedcouncils and directly elected mayors/presidents. The budgetsof sub-national governments are dominated by spending oneducation. Education accounted for 30 percent ofsub-national expenditure in 2009. But the role ofsub-national governments in education is limited. Localitiesact as paymasters for the ministry of education,distributing teachers' salaries on its behalf. Thesepayments are financed from earmarked grants. Localities haveno control over staffing numbers or wage levels in theeducation sector. They are, however, responsible foroperating and maintaining school buildings, a function whichthey finance from discretionary revenues. In much the samerespect, localities act as agents of centrally-financedsocial assistance programs, such as the guaranteed minimum income.